DA 00-627 Scott R. Flick, Esq. Fisher, Wayland, Cooper, Leader & Zaragoza, LLP 2001 Pennsylvania Avenue, NW Suite 400 Washington, DC 20006-1851 Re: KDTV License Partnership, G.P. (KDTV) Request for Refund of Auction Payments For MX Group SST15 in Closed Broadcast Auction No. 25 Dear Mr. Flick: This letter is in response to your Petition for Refund of Auction Payment (Petition) filed November 10, 1999, on behalf of KDTV License Partnership, G.P. (KDTV), a subsidiary of Univision Television Group, Inc. (Univision), the winning bidder in MX Group SST15 in the Closed Broadcast Auction No. 25. For the reasons set forth below, we grant the Petition. Three mutually exclusive long-form applications were filed for secondary television facilities in MX Group SST 15 - KDTV's application for Channel 28 at Santa Rosa, California, the application of The Chronicle Publishing Company (Chronicle) for Channel 28 at Santa Rosa, and the application of the Lake City TV Club for Channel 28 at Lakeport, California. On July 9, 1999, the Mass Media Bureau and Wireless Telecommunications Bureau issued a Public Notice, DA 99-1346 (July 9th Public Notice), announcing that these applicants would be eligible to participate in an auction to begin on September 28, 1999. The July 9th Public Notice also stated that, in order to participate in the auction, all applicants would have to submit a FCC Form 175 (short-form application) by the deadline of August 20, 1999. See July 9th Public Notice at 2. If only one acceptable FCC Form 175 was received for a particular construction permit, the Broadcast First Report and Order stated that the auction would be cancelled for that construction permit. In this case, short-form applications were submitted by Univision and Chronicle. Subsequently, the auction staff issued a Public Notice, Report No. AUC-99-25-F (Auction No. 25), DA 99-1800, on September 3, 1999 (September 3rd Public Notice), listing as incomplete Chronicle's short-form application. The September 3rd Public Notice stated that applicants with incomplete short-form applications could become qualified to bid in the auction only if they resubmitted complete applications by 5:30 pm on September 14, 1999. Chronicle failed to correct the deficiency in its short-form application, its application was therefore rejected, and Chronicle was not qualified to participate in the auction. See Public Notice, Report No. AUC-99-25-G (Auction No. 25), DA 99-1912, released September 17, 1999 (September 17th Public Notice). KDTV maintains that Chronicle's short-form application was "defective" and, therefore, MX Group SST15 should not have been treated as a mutually exclusive group. KDTV also maintains that Univision's application should have been treated as a "singleton" and should not have been sent to auction. Instead, the application was included in the auction, it was forced to pay an upfront payment and to submit a minimum opening bid in the same amount. KDTV requests a refund of $28,000. Because Chronicle failed to cure the deficiency in its short-form application during the designated resubmission period, its application was never accepted for filing and was listed as rejected in the September 17th Public Notice. Therefore, Univision's application was the only acceptable short-form application on file. As indicated in the Broadcast First Report and Order, the application should have been treated as a "singleton" and not sent to auction. We therefore grant KDTV's request for refund of $28,000. Accordingly, IT IS ORDERED, That the Petition for Refund of Auction Payment filed by KDTV License Partnership, GP, IS GRANTED. Sincerely, Mark R. Bollinger Acting Chief, Auctions and Operations Division Wireless Telecommunications Bureau Implementation of Section 309(j) of the Communications Act - Competitive Bidding for Commercial Broadcast and Instructional Television Fixed Service Licenses, First Report and Order, MM Docket No. 97-234, GC Docket No. 92-52 and GEN Docket No. 90-264, 13 FCC Rcd 15920, at 15980, 154 (1998) ("Broadcast First Report and Order"). The refund payment will be made payable to Univision (KDTV's controlling general partner and the payor of the upfront payment) via check or in the form of an account credit. Please submit written instructions as to the preferred method of payment to Ms. Gail Glasser, Office of the Managing Director, Financial Operations Center, Auctions Accounting Group, 445 Twelfth Street, SW, Room 1-A843, Washington, DC 20554 Univision's application (File No. BPTTL-JG0601NT) for Santa Rosa, California, was inadvertently listed on the Auction No. 25 Public Notice, DA 00-548, released March 10, 2000. Pursuant to that Public Notice, Univision was instructed to submit a final payment for the Santa Rosa construction permit by March 24, 2000. This letter supercedes that Public Notice and no payment for the Santa Rosa construction permit is necessary. A separate Public Notice will grant KDTV's Santa Rosa application. Federal Communications Commission Washington, D.C. 20554 Adopted March 23, 2000 Released March 24, 2000